AI in Retail Industry

Artificial intelligence in retail is improving customer experience and creating efficiencies

AI for retail is transforming the way we interact with customers and fulfil orders, across every industry. Some of the industries we expect to benefit most are online retail, financial services and insurance, telecommunications and utility companies.

Why is AI in retail so powerful?

In the fiercely competitive e-commerce industry, AI for retail is enabling new ways to serve customers better. More than 80% of the UK population will use online retail in 2024, resulting in 100s millions of online retail transactions. With such high volumes, increasing conversion and basket sizes by serving customers better can result in significant increases in sales and revenue.

What are the benefits of AI in retail?

Automated customer fulfilment and service with artificial intelligence in retail

Artificial intelligence in retail enables greater automation with customer interactions, such as order and delivery tracking and returns management, resulting in better customer experience in addition to reduced operational costs.

Increase basket sizes with AI-enabled personalised recommendations

Generative AI in retail can analyse customer behaviour, purchase history, and preferences to deliver personalised product recommendations, increasing customer engagement and conversion rates.

AI-powered virtual assistants can improve customer experience, conversion and basket sizes

Virtual assistants can be on hand 24/7 to direct customers to the products they want instantly, without the need to search. The same tools can also make recommendations for adjacent or complementary products, driving increased basket size. By integrating with your stock management platform, you can also serve customers even when out of stock, and manage stock predictions better.

Create a competitive advantage with AI-powered dynamic pricing tools

AI-powered pricing models can instantly scrape competitor pricing across hundreds of competitors and geographies, and analyse market demand and customer behaviour to dynamically optimise your pricing. Set your dynamic pricing engine to optimise for increasing your revenue, your profit margins or balancing both.

Operate a leaner inventory by managing your stock with artificial intelligence in retail industry

AI technology can analyse historical sales data, market trends, and external factors to predict future demand more accurately, optimising inventory levels and reducing stock-outs and over-stock situations. New research from NVIDIA shows 60% of retailers expect to invest in AI infrastructure over the next 18 months.

How can I adopt artificial intelligence in retail?

Fifty One Degrees advises companies on how to adopt AI. We recommend creating an AI strategy, within which you will manage your adoption of AI in a structured and considered way. The steps we recommend are:

  1. Assigning responsibility and creating a project team

  2. Analyse each area of your business to understand the most appropriate use cases

  3. Define your AI strategy, including objectives, governance and reporting

  4. Apply an agile software development approach to identify an initial project

  5. With your first project live, create and roll out a roadmap to apply AI across your business, prioritising based on expected impact and implementation complexity

Ready to adopt AI? Check out our guides

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